Nigeria-based investment company Heirs Holdings has announced to support the Power Africa initiative with an investment of $2.5bn.

The Power Africa initiative is a multi-stakeholder partnership between US, the governments of Ghana, Tanzania, Kenya, Liberia, Nigeria and Ethiopia, and the African private sector with a common goal to accelerate investment in the power sector of Africa over the next five years.

Heirs Holdings chairman Tony O Elumelu said the investment is part of the company’s plans to become an important player in the power sector.

"Heirs Holdings’ investment in Power Africa is not just about creating value for shareholders. We want to conduct business in this strategic sector for the long term, in a way that links economic return to social benefits — a key component of what I call Africapitalism," Elumelu added.

"Access to affordable, uninterrupted power will have an immeasurable impact on the economic ecosystem. The cost of doing business will come down, entrepreneurs will expand and innovate, and jobs will be created as a result."

The initiative was launched in South Africa during US President Barack Obama’s town hall at the University of Cape Town.